💵 S&P 500 to 6,300?

Together with Frec

Good morning,

A quick breakdown — in case you just have the time.

1. ⭐ Goldman Sachs upgraded its 12-month prediction for the S&P 500.

2. ⭐ Four side hustle categories for busy people.

3. ⭐ Markets are pricing in a Republican victory in November.

4. ⭐ The S&P 500 is having its strongest performance since 2000.

5. ⭐ Tesla’s “We, Robot” event is tonight.

6. ⭐ Register for our free Q4 Market Forecast webinar by clicking here!

Market Overview

Chart of the Week

Goldman Sachs believes the S&P 500 will hit 6,300 in the next 12 months.

With the Q3 earnings season picking up pace, one of the world’s most powerful banks has made their case for an already-hot market to continue its upward trajectory.

David Kostin, Goldman’s Chief U.S. Strategist, predicts that the S&P 500 will experience +11% YoY earnings growth by 2025 — claiming that margin expansion will drive earnings higher.

So what? Big banks say things all the time!

That’s very true, but we share this because earnings growth (or retraction) is one of the key drivers for the stock market. We’re currently seeing the best year for the S&P 500 since 2000 (which we’ll talk more about at the bottom of this post) — but hitting all-time-highs is rarely an indicator to flip bearish.

As Austin has said numerous times in Rich Habits Network livestreams: the market is broadening. We can’t know if stocks will go up, down, or in circles — but Goldman Sachs is seeing a steady climb fueled by quality earnings reports across the board.

Together with Frec

Our friends at Frec just announced a major milestone, reaching $100 million in total customer assets just 9 months after launch! This is a testament to the strong demand for direct indexing, an investment strategy previously limited to clients of wealth advisors. 

Frec also introduced four new indices, bringing their total to nine — the most comprehensive selection of any consumer investment platform. You can now direct index Russell 1000, 2000, and 3000, & ESG alongside Frec's flagship S&P indices and more.

Direct Indexing is nearly identical to investing in ETFs, but with a key advantage: it allows you to reap tax benefits by directly owning the underlying stocks. This unlocks significant tax loss harvesting, which is automatically captured by Frec. 

The end result? You get market performance with added “tax deduction points” that you can use to offset any capital gains you might have. Best part is, if you don’t use them in a particular year, they carry over indefinitely until they’re used.

We personally invest with Frec, and are really impressed with the tax-loss harvesting capabilities that this company has unlocked for the everyday person.

In Case You Missed It…

👉 Ep 85: Side Hustles for Busy People (Including Parents)

In this week’s episode of the Rich Habits podcast (linked here) — Robert and Austin shared the following side hustle ideas:

1. DoorDash / UberEats / Instacart — Sometimes the most obvious side hustles are the best! Given their low cost of entry (a vehicle and a cellphone) and flexibility around passengers (your children), delivering food for these apps are a great way to begin making an extra few hundred dollars every month. If you’re a busy parent, give the kids the iPad or put on their favorite music and bring them along for the journey! They might learn a thing or two.

2. Rover / Dog Sitting / Poop Pickup — If you’re a dog person, this side hustle is for you. There are countless people who are walking dogs, dog sitting, or even picking up after them making thousands per month! These side hustles also give you the opportunity to go “off app” and build your own book of business from scratch — allowing you to keep more money in your pocket!

3. Virtual Assistant — If you’re someone who’s electronically-gifted, this is your side hustle! There are countless small business owners and solopreneurs hiring virtual assistants to help them with scheduling, customer service, or even email management. Consider posting about your services on websites like Upwork and Fiverr to find new clients!

4. TikTok Shop Affiliates — This is by far our favorite side hustle! If you’re someone who’s creative, good in front of the camera, or loves trying and reviewing products — you’re going to love this. If you have 1,000 followers on TikTok, you can begin linking out specific products to begin earnings commission with. In Robert’s experience, he paid a Sillybandz affiliate over $15,000 during the month of September — which means they drove over $100,000 in sales for his business! Don’t sleep on this side hustle.

Most importantly, don’t forget why you’re working these side hustles in effort to earn extra income — to pay off your high-interest debt faster and have a little extra every month for investing. 

👉 Q&A: How to Find Old 401(k)s, Driving a $57K Truck, & Graduating w/ $250K in Student Loan Debt

Here’s a link to the Q&A episode that was posted this morning.

We answered questions from the following people: Lesley K, Von P, Chuck C, Jenn, Macy K, Jonah H, & Abdul.

The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content.

Robert’s Callout

The markets are pricing in a Republican victory in November.

For the first time since the presidential debate, the Goldman Sachs “Republican Victory” basket of stocks have surged above in the “Democrat Victory” basket of stocks — meaning the markets are now trading as if the Republican party will win in November.

We share this information with you all not to be political, but instead to remind you that history tells us a very cohesive and predictable story — no matter who wins, the stock market will continue to trend higher over time.

We had shared the above graphic during a livestream inside of the Rich Habits Network last week to remind everyone that the election is usually a risk-clearing event that causes the stock market to shake off the volatility and continue to trend higher over time.

I’m positioning my portfolio for such price appreciation.

Since the start of 2023, the S&P 500 is up +49% — that’s amazing! Everyone who has been following along and continually dollar cost averaging into the markets should feel very good about what they’ve accomplished thus far. I continue to believe, despite who wins in November, the stock market will continue to trend higher as American capitalism thrives for decades to come.

Austin’s Callout

The S&P 500 is experiencing the strongest YTD performance of the 21st century.

To reiterate what Robert just said — the S&P 500 is up +49% since the beginning of 2023, driven higher by this year delivering the single best year of returns since 2000!

So let’s talk about what’s driving this…

• Continued earnings growth — as we have shared in the past, the S&P 500 is experiencing broad-based strength this year. This can be seen by sector-specific ETFs like XLV, XLF, XLU, and XLC hitting all-time-highs.

• Multiple expansion — the premium investors pay to own growing companies is rising. As we shared last week, this “earnings multiple” has now reached 22X — historically higher than the 18X average.

The Rich Habits Radar

• 👉 Tesla’s “We Robot” event will be live tonight, unveiling the company’s future.

• 👉 AMD’s next AI chip will be in mass production later this year.

• 👉 Robinhood announced its Investor Day + sweet branding updates.

• 👉 Roblox got crushed this week from a Hindenburg short report.

• 👉 Amazon will greatly expand same-day prescription delivery in 2025.

• 👉 Costco is selling out of their gold bars at an alarming rate.

• 👉 The Rich Habits Network is closing in on 500 total members.

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• Acorns — Get $35 free when you subscribe

• Suriance — Protect your family with term life insurance

• Video Course — Use code “Newsletter” for 15% off

• Seeking Alpha — Optimize your portfolio

• Credit Card Matrix — Find your next favorite card to swipe

• Roi — Use code “Habits” and start tracking your net worth

• Dynasty — Protect your home in a trust

Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.